Should You Buy Index Funds Now, in an Overvalued Market?

Рет қаралды 159,941

Күн бұрын

As a passive investor, is it wise to buy market tracking index funds and ETFs from companies like Blackrock, Vanguard and State Street, even when they're at all time highs? Jack Bogle (founder of the Vanguard group) spent most of his career working in the passive investing field and in this video, we break down his thoughts as to dollar cost averaging in an overvalued market.
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★ ★ CONTENTS ★ ★
0:00 Speculation Driving the Stock Market
2:40 The 2 Possible Outcomes
4:20 Should You Buy Index Funds Now?
8:34 Jack Bogle's Advice
10:00 Buy Right, Hold Tight
My Podcast: / theyounginvestorspodcast
Brandon van der Kolk is authorised to provide general financial product advice in Australia and is an Authorised Representative (Number 1305795) of Guideway Financial Services Pty Ltd, AFSL Number 420367. Any advice is general & does not consider your financial situation, needs or objectives so consider whether it's appropriate for you. Read Brandon's Financial Services Guide available from guideway.com.au/NewMoney.pdf. Past performance is not a reliable indicator of future investment returns.
Contact email: hello@newmoney.contact
Note: I do not have the ability to answer all emails, but know that each email is read. If enquiring about sponsorship, New Money is currently only seeking sponsorship from established brands.

Пікірлер: 586

@NewMoneyYouTube 9 күн бұрын

Thanks for watching everyone! If you enjoyed, please leave a 'like' - it helps the video out tremendously! I really appreciate it. 🙂

@piyer664 9 күн бұрын

I do like your videos, you are one of the channels I subscribe to and follow. Lately, I get the impression that the content is so repetitive and there is no new perspective. Something for you to consider and think about. Good Luck!

@marcelorachevsky8944 9 күн бұрын

Great content!

@EvoraGT430 3 күн бұрын

SO MANY BOTS pushing fake gurus!! You need to step on them, man.

@MostIntelligentMan 2 күн бұрын

we going much higher, buy buy buy, u must be absolute idiot to think any fundamentals have anything to do with price

@phyllisburtonhearsawho 6 сағат бұрын

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.

@GregMerchant 6 сағат бұрын

For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary expertise to pull off such trades effectively carry them out.

@Clancysoucie 6 сағат бұрын

The 85% of funds managers underperforming the index provided is for any single year. More impressively and importantly is to look at that figure over 5, 10, and 20 years, where it increases to 90, 97, and 99%. That makes for a more than compelling case for index investing, and how very rare the likes of Peter Lynch truly are.

@Lamarche1959 6 сағат бұрын

I've only sat down with 3 financial planners and 2 stockbrokers in my time to discuss investment planning and funny enough, none tell you this fact.

@E.GCreates 6 сағат бұрын

Most of the people railing against passive investing also just happen to be active managers themselves. It is wise to look for a fiduciary CFP when starting out. I went with Dianne Sarah Olson and I have had awesome experiences with her. Going from $25k to $90kin 8 months. I can say that's over-performing the index and S&P 500

@phyllisburtonhearsawho 6 сағат бұрын

I did read about Dianne Sarah Olson, Quite an interesting lady to look up on the web.

@amgengroup5352 2 күн бұрын

Just go arcc, main, htgc, gbdc, gain, glad or something like that. 8%+

@daloriscutone6380 2 күн бұрын

My portfolio cracked $50 million this week, I have a good amount of SCHD and I'm still buying weekly preparing for a flip in tbe market. Right now it makes up on 4% of my entire portfolio. VOO is only 5% of my portfolio and VGT is about 6%. I'm working to bring those up to 10% each and reduce my individual stocks down to 40% from 52%... I also hold smaller amounts of VIG, DGRO, and MGK in a secondary account that I'm buying weekly as well. My individual stocks have blown all other investments out of tbe water the last 5 years, but I don't expect to outperform over the long haul.

@amgengroup5352 2 күн бұрын

Good to know, are you doing this yourself, whats your cash flow like

@daloriscutone6380 2 күн бұрын

No I'm not, Diana Leayani lara is behind my growth, look her name up or make proper research for one who is suitable with your goals.

@harlibassham8187 2 күн бұрын

Diana is wonderful, Im happy seeing this recommendation, she looked more beautiful in person when I saw her in New York.

@huebothedog665 6 сағат бұрын

Diana stole my money

@ClaudiaSchreiber-b1p 6 күн бұрын

Dividend investing is most effective when approached with a long-term perspective. While dividends can provide immediate income, the true power lies in the compounding effect over many years. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...

@AdamLaus-xu8yb 6 күн бұрын

Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.

@IsabelleMarie-m1g 6 күн бұрын

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K

@michaeldavid6040 6 күн бұрын

impressive gains! how can I get your advlsor please, if you dont mind me asking? I could really use a help as of now

@ThomasBrackett-tp2xe 6 күн бұрын

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

@avator1233 5 күн бұрын

@@ThomasBrackett-tp2xeshe’s great in bed too

@shukriAmad 6 күн бұрын

Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.

@billclint-g9n 6 күн бұрын

Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.

@AlejandroDiego-g9m 6 күн бұрын

Yes. It is very easy to buy in on trending stocks but the problem is knowing when to sell or hold, which is why a coach is important. I've been in touch with one for about a year now and although I was initially skeptical about it, I will say I've made more progress within a year generating 6figure profit

@AgustínAndrés-s8r 6 күн бұрын

How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.

@AlejandroDiego-g9m 6 күн бұрын

Svetlana Sarkisian Chowdhury is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

@Pacifist322 21 сағат бұрын

ANOTHER COMMENT CHAIN OF SCAM BOTS

@Aurierserge50 5 күн бұрын

The stock market is just filled with both overvaluation due to rapid gains and strong economic fundamentals justifying high valuations. Raises concern for my $600K equities going 8% up and 20% down. So is it better to hold on or sell off positions to hold cash?

@Higuannn 5 күн бұрын

Markets have incorrectly priced in such a pivot six times over the last two years. This is why pointers from market experts are essential.

@Jaymilnere 5 күн бұрын

@@Higuannn Investing Is more than reading quarterly reports. Learnt this from reading Peter Lynch's book. I believe there are people who do this for a living, and I just delegate the task to these professionals. That's how I make money from the market to be honest.

@Jaymilnere 5 күн бұрын

Investing Is more than reading quarterly reports. Learnt this from reading Peter Lynch's book. I believe there are people who do this for a living, and I just delegate the task to these professionals. That's how I make money from the market to be honest.

@Aurierserge50 5 күн бұрын

@@Higuannn I've been getting suggestions to use one, but where and how to find one has been challenging, Can i reach out to the one you use?

@Jaymilnere 5 күн бұрын

@@Aurierserge50 I have worked with a few financial advisors before now but i ultimately settled for Alicia Estela Cabouli. She is SEC regulated and licensed in US. You can easily look her up

@PaytonBilliAndria 2 күн бұрын

My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?

@Jadechurch-ql3do 2 күн бұрын

the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.

@yeslahykcim 2 күн бұрын

True. Having the right financial planner is invaluable. My portfolio is well-matched for every season of the market and recently hit 90% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, though this could take till Q3 2024.

@Tonyham198 2 күн бұрын

Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.

@yeslahykcim 2 күн бұрын

“Laila artine kassardjian” is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

@StephanieCosty-r3c 2 күн бұрын

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

@Madridstrat 9 күн бұрын

I've kept much of my savings in cash for safety, but I'm unsure if it's right for retirement. Contemplating investing $100K in stocks, as I've heard investors can profit in tough times. Unsure about my next move.

@Duttonmuffins 9 күн бұрын

I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of 5%.

@TheDayTheDay312 9 күн бұрын

you need a certified financial planner straight up! personally, I invest in ETF's and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment

@Bunnydrille 9 күн бұрын

Yeah, I’m also nearing retirement and have greatly benefited from using a financial advis0r. Since I started investing later, I knew I couldn't rely on the compound interest of index funds alone. Interestingly, I've managed to earn more profit than some of my peers who have been investing for many years.

@JesseMayhill 9 күн бұрын

Please can you leave the info of your lnvestment advsor here? I’m in dire need for one

@Bunnydrille 9 күн бұрын

Melissa Elise Robinson is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

@mertie-l2f 2 күн бұрын

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.

@voncile-y5s 2 күн бұрын

Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.

@Daneilchirs 2 күн бұрын

You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.

@thuylamson-z7t 2 күн бұрын

Could you possibly recommend a CFA you've consulted with?

@Daneilchirs 2 күн бұрын

My CFA ’ANGELA LYNN SCHILLING’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

@jeanlaudato 2 күн бұрын

Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.

@640A 9 күн бұрын

Jack had an amazing voice!

@Seelenverheizer 8 күн бұрын

yes, he is the type of guy you hear talking and instantly like

@xJoeKing 6 күн бұрын

He got me pregnant just by talking to me.

@vestedinterest5655 9 күн бұрын

I buy VTI and SCHD every week regardless of the market conditions.

@jonathanb4764 3 күн бұрын

This is the way.

@diggingmystyle 3 күн бұрын

Only these 2?

@marcusaurelius6012 9 күн бұрын

There is 1 x person who is an expert at timing the market. (Paul Pelosi) he is amazing. His ability to gauge/forecast opportunities is 10/10

@diggingmystyle 3 күн бұрын

Even Warren Buffett wears Pelosi underwear.

@PeterParker-wj3cr 9 күн бұрын

Jack Bogle is one of the most venerated investors of all time! The impact of index fund investing has been immeasurable. Buy and hold forever might not apply as well to individual stocks. But you definitely want to hold onto the greatest companies in America forever! He is a luminary legend!

@Johndoe10007 8 күн бұрын

Peter you are absolutely correct however there’s a good chance if you buy in now the price you pay could go way down and take years to go way up again

@PeterParker-wj3cr 8 күн бұрын

@@Johndoe10007 There is always a chance price will drop. That's the point of DCA in an index fund. When you buy monthly for example. Sometimes you will buy in an overvalued market. Sometimes you will buy in a bear market. But along the way you will always get the average! Now, if you're telling me you're prescient and can predict the exact date markets will drop and raise again. Then you my friend have a God giving gift, that us common folk don't have.

@PeterParker-wj3cr 8 күн бұрын

@@Johndoe10007 There will always be a good chance prices will drop. Nothing goes up forever. However, that is the beauty of DCA in an index fund. Sometimes you will over pay. Sometimes you will under pay. But along the way you cost basis will average out! Now, unless you're telling me you're prescient and you can predict the exact date the market will crash and raise again. Then you my friend have a God giving gift the rest of us common folk don't have. And with that gift. I'm assuming you will be on the Forbs wealthiest list!

@Adiscretefirm 9 күн бұрын

Isn't this why dollar cost averaging is all about?

@MC-gj8fg 9 күн бұрын

I agree with DCA the same amount in bull or sideways markets, especially given that cash is paying so much right now, but wouldn't there be a strong argument for DCA a higher amount during market lows? We're not trying to foolishly time the bottom of the market, but if the market drops to a spot where we can objectively call it "on sale" it seems like a good time to dump more in than normal.

@maartendejong9060 9 күн бұрын

Problem is how do you define market lows? Maybe based on the Shiller PE some optimization can be done.

@j-ron2391 9 күн бұрын

I think about it this way: if everyone is waiting for a pullback to eventually buy more, then the price might not be that unreasonable

@soylentgreenb 9 күн бұрын

The answer for me when I know the hype isn’t real is to find a less overvalued index (e.g. S&P 500 equal weight or msci world enhanced value or msci world quality sector neutral) these are nice indices to begin with since they’ve had good performance and don’t go so heavy on the bubbly stuff.

@CameronFussner 9 күн бұрын

AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take any other recommendations you make.

@lowcostfresh2266 9 күн бұрын

I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective consider financial advisory for informed buying and selling decisions.

@hasede-lg9hj 9 күн бұрын

I have greatly grown more than 45% this year already, though my FA has advised we diversify going forward. But safe to say a growing market does not always mean that the economy is smooth-sailing, but yeah, we can as well enjoy while it lasts.

@leojack9090 9 күн бұрын

@@hasede-lg9hj Could you kindly elaborate on the advisor's background and qualifications?

@hasede-lg9hj 9 күн бұрын

Annette Marie Holt has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her

@fadhshf 9 күн бұрын

@@hasede-lg9hj Thank you for the lead. I searched her site up and filled the form. I hope she gets back to me soon.

@TuoDev 6 күн бұрын

Great advice and details from both history and now. Subscribed.

@CAGriff 9 күн бұрын

Yes - but I’m not buying a lot: it’s averaging and sometimes when my main position is at an inflated price, meaning right now, I have lowered the amount i put into it bc mag-stocks are carrying indexes and honestly finding good depreciated good stocks underneath the index tech growth.

@panamahub 9 күн бұрын

Just think about it like savings in the bank. Leave it there and don't worry about it.

@drjborch2 9 күн бұрын

That’s the beauty of a 401k …. Takes the thinking out of it

@FoundingFathersUSA 9 күн бұрын

Strong presentation. 👍

@josephcurione2947 6 күн бұрын

Thank you

@aliasname602 9 күн бұрын

When the market is cheap focus on a growth fund, when expensive a dividend growth fund, and average the sp500 or the total stock index.

@utubeuser5312 9 күн бұрын

I remember 1999 when we told each other the PE ratio didn’t matter any more.

@augustindroste8198 7 күн бұрын

Hi Brandon, I wonder how you explain your passion for stock picking, which fundamentally contrasts with passive investing, as you aim to outperform the market. Passive investing, on the other hand, involves averaging the market's returns and aligning your portfolio accordingly. I find myself at a similar crossroads and would love to understand your rationale behind choosing both approaches, which seems paradoxical to me. Thanks and keep up the thoughtful content!

@ThomasShelby-xz2fk 3 күн бұрын

The market P/E forward ratios are reasonably priced. This isn’t the time to be getting bearish, especially since rate cuts are on the way soon

@jerrycampbell-ut9yf 6 күн бұрын

I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

@Peterl4290 6 күн бұрын

@larrypaul-cw9nk 6 күн бұрын

@sabastinenoah 6 күн бұрын

impressive gains! how can I get your advlsor please, if you dont mind me asking? I could really use a help as of now

@larrypaul-cw9nk 6 күн бұрын

Her name is “TERRI ANNETTE MOORE” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

@sabastinenoah 6 күн бұрын

I find this informative, curiously explored her on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated

@donpeters7080 8 күн бұрын

You keep talking about investing in US assets from USD base. I would like to hear you discuss investing in US Assets from an AUD base, adding Foreign Exchange Risk into the equation...

@vantruongsinh 9 күн бұрын

I have asked the same question before on reddit...

@marcr8181 9 күн бұрын

At no point in time so few stocks were driving the indexes. So rather cost averaging into overly into 6-7 extremely expensive stocks, the strategy could be buying more into ETF that ignore those. Just to shift the weight a little away from them.

@Vivienedouglass 7 күн бұрын

I already own shares of TSLA, NVDA and APPL as well. Sure, I don't mind having these equities sit around for a while, but I'd also like to appreciate short-term opportunities that could fetch $200,000 or less..

@kurtKking 5 күн бұрын

You should consider financial planning

@jeremycoppola8466 9 күн бұрын

Great topic

@fpivi 9 күн бұрын

The market is not just the S&P500 - there's a bigger world out there. Europe, Brazil, Chile, Japan... USA is expensive, but not every market is expensive right now. Just adjust the ETF

@Ascendsean35 9 күн бұрын

I've bought quite a bit of the Brazil ETF EWZ. HOpe i don't look like an idiot later for it lol. But it's trading pretty low and pays a dividend. I bought some EWU for uk too. Def global opportunities

@user-ye7yc4ru7o 9 күн бұрын

The problem is that on many many markets ETF strategy simply does not work. EM can move sideways for decades....

@mostbeautifulroads9789 9 күн бұрын

Then you aren't passive investing, but making sector/regional bets instead.

@fpivi 8 күн бұрын

@@user-ye7yc4ru7o The S&P can move sideways for long periods - just like the 80s... But yeah, a little more risk.

@fpivi 8 күн бұрын

@@mostbeautifulroads9789 True, but if you keep your position on the US and start to buy something like VGT (Europe Index) for the moment, it's a good compromise. Same game, different server, haha

@tHebUm18 7 күн бұрын

Nice to see good advice on this on YT. Depressing how many YTers get views shouting about a coming crash and fooling people into trying to time the market; most likely destroying people's long term wealth.

@Willycheng590 7 күн бұрын

You're only as good as the decisions you make today with the money you have. This time last year I considered getting into index funds and ETFs without much knowledge and decided to have a consultation with a trade analyst, and it was incredibly insightful. One year and a couple of months in, and I'm debt free. I truly cannot stress enough how helpful experts in this field are! Keep the videos coming brother.

@Miawilmore 7 күн бұрын

I've wanted to get into the market at different times but I don't know how it works. How has your experience been?

@Willycheng590 7 күн бұрын

I found out that investing is not rocket science. Jonas Herman is the brain behind my success. I've gotten into a plethora of assets with 10k spread across stocks (index funds) for the short term etfFs, and Roth Ira for the long term which has made me over five figures. Now I sit back, and just reinvest at intervals while I handle my other businesses.

@Pathston 7 күн бұрын

Sounds like I need help so bad. To me, investing is not worth it and I know that's the same mindset holding me back from taking a step forward.

@Roymysterio 7 күн бұрын

People often mistake hubris for actual knowledge when it comes to money and I don't even blame them because there's an influx of false info on the internet today. Unfortunately, it hampers rational decision making. He is one of the bright ones, providing me with a great deal. Indepth investment strategies are just one of the many components.

@Donnierra 7 күн бұрын

Can you introduce me to him? I'd love to learn more about his service.

@gripmasterflo6753 9 күн бұрын

Since the market doesn't seem to be overvalued in general, but in case of some big companies, the question should be, if this may be the time for stockpicking instead of investing in the S+P.

@Woozle1 8 күн бұрын

I have been investing for over 2 years now and this is the best financial advice I ever saw on KZfaq. I totally agree! Set out a solid strategy that works for you and stick to it. In other words buy right and hold tight!

@BooomBila 4 күн бұрын

great topic bortha

@KimberlyFlores-kr1bz 7 күн бұрын

Great video! No fluff just right into it. Keep up the great work! did my homework on which stocks and ETFs I like for the long run, made a plan for dollar cost averaging for a year and I'm sticking to it, trying not to panic...

@EdwinBoettcher 7 күн бұрын

I’m seeking to invest a good amount across various markets but don't know which is safe at this point of uncertainty, I was advised to diversify between stocks and bonds, since they can help hedge against inflation, or am I better off holding cash?

@kt6332 9 күн бұрын

I just started learning and investing in the market about 3 yrs ago. I’ve made some mistakes looking for that delusional overnight quick rich stock. I now have a long term portfolio with a combination of stocks and ETFs. I feel more confident and comfortable investing long term!

@ryanlutz1216 Күн бұрын

Thing that stuck out at me is the clip of Jack saying "2.5% dividend - somewhat lower than history". Today, our S&P 500 ETFs return 1.3% dividend... Would like to see companies ramp up their shareholder equity returns. At least buybacks seem to be more common now.

@admiringrubin2910 9 күн бұрын

Can you do a video on rebalancing for passive investors DCA'ing into US and ex-US ETFs?

@MG_StockAnalysis 8 күн бұрын

I believe investing in index funds is better than nothing but with very little effort you can pick the right stocks and hold them for the long term and make 20-30% a year instead of just 10%

@posthardcoresinger 9 күн бұрын

If you want to learn to trade, go all in. If you half-ass it in any way, it's easy to fail. A single failure due to psychology can blow up ANY part of your trading plan, risk management, etc. If the government schools didn't suck so much and hide this from us I would've aggressively DCA'd into the S&P from 18 onwards. Worked as many hours as I could stand, skipped going to college out of desperation feeling like I need to do something, and lived with my parents. Since they screwed us, I took the hard route. Ironically the hard route pays way, way higher returns than passive investing.

@BillyCarsley 9 күн бұрын

Incorrect

@739jep 8 күн бұрын

Of course you should 💪 Stay the course !

@DeerfieldDiscGolf 9 күн бұрын

Only Divided ETF’s. Their PE Ratios are around 17

@PulpMatter 8 күн бұрын

Love it, can you do a deep dive on albermale stock and why it’s tanking so much ?

@diggingmystyle 3 күн бұрын

My strategy is to keep buying if it tanks. It's not going anywhere unlike other small players.

@somethingclever1234 9 күн бұрын

buy VOO but keep a tight stop (21EMA stop)

@Thebt7 9 күн бұрын

Can you please please please address something for me. It might come up in this video but can you address how indexing has affected investing. I often seen YT finance clips look at 100+ years of data but how has certain innovations in finance change historical data and signals.

@nonexistent5030 9 күн бұрын

100 years of data shows whem the market has been this expensive. The following 10 year returns on the index has only ever been between -5% and +5%. You can bet on this time being different from 100 years of data, or you can buy t bills and lock in the high end of that range then resume over time. Just that simple tilt in your decision making can make a massive difference in your performance.

@onefrequencydown 6 күн бұрын

Dude you have more than a passing resemblance to a young Josh Homme of the infamous rock n roll band Queens of the Stone Age 🤘. Great video. Keep investing.

@bobsala7780 Күн бұрын

Came here to say the same thing about Josh Homme. It make me wonder if the KZfaq algorithm recommended me this video because I am a fan of Queens of the Stone Age.

@kulvindersamra119 9 күн бұрын

Great video

@RandomUser-100 9 күн бұрын

Grant video, wise words. I’ve been holding the majority of my ISA in cash because everyone has been saying the market will crash… but all it does is climb.

@Gregsthename 4 күн бұрын

Ouch, learning for you is to not try time the market. Start to DCA in.

@marcelorachevsky8944 9 күн бұрын

Great content!

@joostonline5146 9 күн бұрын

the nominal stock prices will always goes up, because the value of the dollar always goes down over time..... you are gambling that you can sell your stock with a purchasing increase at the time you want. It can be an inliquid market or recession dip at that specific time.

@thorstenvogt6561 9 күн бұрын

This is, of course, true for any investment of any kind, and also for a bag of cash you sit on. You’re always hoping and expecting that your chosen approach to storing the fruits of your labor will do better than the possible alternatives. You can call it gambling if you want, but the decision can (and should) be one informed by historic results.

@dexterrity 9 күн бұрын

@thorstenvogt6561 but historical results aren't indicative of future performance ¯⁠\⁠_⁠(⁠ツ⁠)⁠_⁠/⁠¯

@thorstenvogt6561 9 күн бұрын

@@dexterrity that applies to *ALL* decisions you make in life. The best you can ever do is go by empirical evidence.

@NDtoker 9 күн бұрын

Should i start my sons coustodial fund now though or should i wait. Its a 3 gran minimum for an admiral index fun in snp 500

@DarkoFitCoach 9 күн бұрын

Pls read jack bogles book: little book on investing. 10bucks and all your questions will be answered Hint: the answer is yes

@st.charlesofaberdeen154 9 күн бұрын

Why don't you start a fun for them on Robinhood with no minimum❤

@coreytodd5949 3 күн бұрын

L00kup Linda Jean Edral, she's a planner..

@HS-PGA 6 күн бұрын

Interest rates have not really had an impact yet and the lag effect will kick in on valuations that are based on 0% rates from a couple years ago and money printing

@emilecloete4029 8 күн бұрын

If buying during high and low P/E ratios is a good investment strategy. Why does Berkshire Hathaway maintain such a substantial cash reserve instead of investing it in the market?

@BeverlyRandall-e3d 10 сағат бұрын

Wow another Awesome strategy. I am gonna start trying in right away. Anyway thanks very much for the good work you do here and in your telegram Chanel .Thanks once again .

@mattherzberg991 9 күн бұрын

"Fuck it. Just keep putting money in."

@user-zk6fc3dw9e 2 күн бұрын

Compared to the average American who says, "F it, just consume," that's actually not bad advice. This has been true for many investors who put their money into low cost index funds every month.

@DarkoFitCoach 9 күн бұрын

As our king bogle says: always be in the market. Up down left or right the rollercoaster will go. And it doesnt hurt unless you jump out of it (sell your position) I am in the sp500 so if the market goes up: win If the market goes down: i buy more stocks with less money = win Fundamentals always win and the top usa 500 companies that represent 80% of usa economy and about 50% of worlds stock market will always do well on aggregate and go UP in time. As sure a bet as any ever. no guarantees, just very high likelyhoods

@audriuskralikas6103 22 сағат бұрын

wow, such a high quality video. Good job!

@pmason6076 6 күн бұрын

Great video. Note however that Dollar Cost Averaging is the more successful strategy over Lump Sum investing 1/3 times, where as Lump Sum investing is more successful over Dollar Cost Averaging 2/3 times. Statistically speaking, you're more likely to succeed with Lump Sum investing.

@__Michelle__ 7 күн бұрын

Always upping the game with graphics 👌 Cat also loves the flying money and has launched himself at the TV several times during this video 😅

@tncoder 9 күн бұрын

long story short: yes :)

@NewMoneyYouTube 9 күн бұрын

I like your style!

@misterbeach8826 6 күн бұрын

@@NewMoneyKZfaq Yeah, so true. I understand kids worrying today during this bubble, with their lack of xp from 2007/08, or 2000. Every crisis, it is the same sorrows. Try to learn from the Chinese real estate crisis. Although the Chinese market has tanked for three years, you see winners. How is this possible? Fundamentals. If you are as arrogant as Michael Burry, you try to defy gravity by investing in BABA, PDD, JD, but then you bet on the losers (in China, the retail sales grew YoY -11 %, incredibly). It take a long time before the Chinese's retail sales will go up again... If you are into fundamentals, though, you would have seen that banks were doing just fine in China. Bank of Communications made +56 % in 3 years... despite a Hong Kong crash of -43 % during the same time period.

@l33tr4n55 9 күн бұрын

I'm using 10x20 EMA cross on weekly chart > cross green buy, cross red sell > too easy

@ayo9057 9 күн бұрын

Company’s reinvest instead of paying taxes on earnings.

@drewodessa2483 9 күн бұрын

Is the market going up or is the dollar going down?

@JoshuaEdson22 9 күн бұрын

As we witness the current economic landscape, it's becoming increasingly clear that we're entering a recession. These times can pose significant financial challenges.

@JohnMiddleston 9 күн бұрын

Indeed, Recessions have a way of affecting people's financial stability and investment portfolios in profound ways.

@poll1986 9 күн бұрын

there is a theory that passive investment fonds are not tracking the S&P500 but, S&P500 follows passive investment etfs. They are more and more focussed on mag7 which creates a big risk at the moment.

@quanaonamepxingiarefcshop-8016 Күн бұрын

Thanks for your sharring 👍👍

@JackWilliams-hp5ip 9 күн бұрын

This seems like the worst period. Even the market are now very unpredictable. Started investing recently when the market prices were a bit high,today I am more than 60% down!

@Lionadmike 9 күн бұрын

Don’t be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you’re investing in great companies. kudos to Sonia campbell

@TristanLegard 9 күн бұрын

Only God knows how much grateful i am. After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!Sonia campbell

@JackWilliams-hp5ip 9 күн бұрын

Amazing You trade ?? Wow that's huge, how do you make that much monthly?

@BrianLyke 9 күн бұрын

Sonia campbell is my hope on the current 'bear summer' . I did so many mistakes but also learned so much from it, and of course from Sonia campbell.

@JackWilliams-hp5ip 9 күн бұрын

This summer is making me poor please I want to join the moving train

@xXdnerstxleXx 5 күн бұрын

Schiller PE is inflated due to pension funds and globalization. There are plenty of stocks with reasonable PE ratios around 5-20 in Europe, Asia and latin America so you can invest elsewhere. Sure you can invest more into Nvidia, more into Microsoft and so on, but I personally think we will see a gigantic bubble burst IF there is reason for liquidation. Stock market however doesn't have to behave rational. It can keep going wrong and wrong for longer and longer as long as long as it just works out.

@vvolfflovv 6 күн бұрын

While I think the long term future of the index is bright, I don't have a lot for risk tolerance and I'm getting around 5% interest on GICs and bonds so that's where I have the heaviest bags.

@jate.photography 7 күн бұрын

Isn't there also an opposite theory where lump sum beats dollar cost averaging as well?

@larrygerry985 9 күн бұрын

Index funds hedge against your individual stocks.

@abdukhakimsalimov6101 9 күн бұрын

dollar-averaging works assuming that the times when markets go up outweighs the times when markets go down, during your lifetime. For someone who is just about to start value investing and is at 30+, would you recommend starting now or wait for market correction from all-time highs?

@atkim122 9 күн бұрын

There's two main possibilities. The next 30 years can continue the trend of the S&P500 over the last 100 years and average 10% annual returns (despite ups and downs). But Japan is a cautionary tale that markets don't always go up. Japan's Nikkei index just recently reached the level it was last at back in 1989! So the last 35 years on their chart just looks like a smile.

@touchofgrace3217 9 күн бұрын

I’m 50 and there is no way I will pay a 25% premium for stock, watch it plummet next year as interest rates are lowered and then spend the next 4 or 5 yrs breaking even. I’m putting my money in a combination of small cap companies and solid high dividend stocks until the dust settles. Then I will shift back into the S&P 500 when it is fairly valued.

@chkee17 9 күн бұрын

Just Keep Buying

@druvaciam5407 9 күн бұрын

Never selling makes no sense as investors goal is making money. So you need to sell unless you invest in dividends companies.

@jonathanb4764 3 күн бұрын

Yes. The answer is yes. Next question, please.

@that1redhairedguy 9 күн бұрын

I disagree 100% with applying this in the current market model. Look at the current market where NVIDIA is responsible for more than 30% of the current S&P return this year. The market is hyped up off of rate cut optimism which hasn't come, but the market did not correct. It has so many rate cuts and perfect possibilities priced in... Just imagine when it crashes which it is most definitely due, people will stop 401K contributions due to raising inflation and to shield themselves from anymore loss. Wthout the auto influx of 401K cash down she goes and fast! I would not buy a share of the S&P at the current price unless your ready for a big hair cut. Don't listen to me do your own research.

@sunlight5296 9 күн бұрын

When do you think it will crash?

@tomaspacheco2920 9 күн бұрын

Can you time the market for me? 🙏

@SCCCC1 9 күн бұрын

Time the market for me too..thanks

@danew637 9 күн бұрын

You remind me of myself a years ago … and I lost the 30% bull run …

@alexzhou6641 9 күн бұрын

It matters not to index investors they keep buying regardless of market conditions and never sell them

@Rigs_1980 9 күн бұрын

You can’t catch a falling knife. So just keep investing at your same rate. You have to be mentally prepared for the drop. It will happen, no one knows when. No one can predict the future at all. All the analysts are just as good at predicting as you and me. Long term I personally think you will be fine. Better to invest than keeping all your money parked in a savings account or under your mattress where each year it gets eaten up by inflation.

@christopherpaul5 7 күн бұрын

I'm tired of these new buys every week, just to make up some assets with low percentage on my $236k portfolio and try to keep everything around 10%. Do you think these stocks you just mentioned are safe buys to outperform the market this year?

@ScottArmstrong12 7 күн бұрын

For me. I would avoid the index funds, mutual funds, or specific stocks for the time being. The 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows sign of recovery. Or hire a good market strategist.

@KevinClarke9 7 күн бұрын

I Invest in low-cost index funds or ETFs that track broad market indices, such as the S&P 500. These funds offer diversification across a wide range of stocks and can be a more passive, low-maintenance investment option. They are suitable for investors who prefer a hands-off approach and want exposure to the overall market.

@MarkGrimm8 7 күн бұрын

Currently, the best market strategy is to work with a credible investing coach. Since a while ago, I've been in touch with a coach, mostly because I lack the depth of understanding and mental toughness to deal with the ongoing market conditions. You lack the information necessary to succeed in a competitive market, not because you're doing anything wrong, but rather because of your lack of experience.

@ritalorrigan 7 күн бұрын

Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?

@MarkGrimm8 7 күн бұрын

My CFA Carol Vivian Constable, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

@yasirnoori4848 7 күн бұрын

Historically the S&P 400 mid cap did better than the S&P 500 large cap index funds. How about while the S&P500 is being too high, while the S&P400 being much lower, we switch our dollar cost averaging plan to the latter?

@chrisja1998 4 күн бұрын

Shiller P/E needs to be reworked. But as you said, markets are expensive pt. i am not buying currently. I don't think it's boom or bust for Ai. I see it much like the 2000 IT bubble. Everyone speculating in the new tech, then internet. Now Ai. Everyone knew it would be big, but they didn't know how it would play out. In the short term the internet was overvalued, but on a longer term everyone in the 1990-2000 undervalued it. I see the currently Ai frenzy like this. Expect a crash sometime, and then the true winners will come out on top. But i don't think we are there quite yet.

@bigno1900 9 күн бұрын

i dun think index fund investors should try to time the market.

@bpb5541 7 күн бұрын

Why not. I think those that are not trying to time it this go around are going to lose at least half of their portfolio net worth. Said another way, set it and forget it, time in the market, not timing the market 401k / Roth IRA investors are about to get their faces ripped off. When? When the FED cuts and the yield curve reinverts. That is a bearish event (look at any chart when it has happend in the past) and is the last chance they have to get out of their longs and if they are smart short the market. There are better more accurate ways to time but I am not going to go into it. That explanation will save the most people here the most amount of their money.

@bigno1900 7 күн бұрын

@@bpb5541 I haven't met anyone who can time the market 100%

@quocd5580 9 күн бұрын

My 401k contributions is 1% right now, due to the chance of a market crash soon. I will change back to 10% after the market crash. I”m just an average person, but if i can buy cheaper then i would do it

@BillyCarsley 9 күн бұрын

No no no no.

@tarrynhendry789 8 күн бұрын

That is fantastic advise the $1000 analogy. You aren't over purchasing based on emotion simply this is the amount I have saved monthly for investments. Simple Stupid! :)

@midwestcannabis 9 күн бұрын

Yes

@tarikviaer-mcclymont5762 9 күн бұрын

This guy is everywhere

@midwestcannabis 9 күн бұрын

@@tarikviaer-mcclymont5762 So are you Bud! 🥳🥳🥳✌️✌️✌️

@BodhiGeraci 21 сағат бұрын

How about a lumpsum? That you need within 6~ months?

@Meowmeow.age.6 9 күн бұрын

I project negative returns for USA over the next 5 years barring hyperinflation. If you buy I would scale in small. If you are already in your fear is hyperinflation so you would be rotating into India Indonesia MELI SEA or other foreign stocks with a moat like Samsung. Australia is nice place to invest.

@traviswes7082 8 күн бұрын

I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio dwindle away is such an eye -sore.

@samwam9442 5 күн бұрын

Not a FA, but some points: 1. You seem to have a lower risk tolerance than going 100% all stocks. If your portfolio brings you this much stress, then maybe go for a lower risk portfolio with more bonds etc. With these higher interest rates, I've personally gone for some term deposits which provide solid guaranteed returns. 2. Selling now locks in your losses. You've gone for a wide portfolio which most probably will perform well in the long run, there is no sense in selling now. Investing is a mental game more than anything. If you're this worried about being in the red I'd start to reevaluate things and if it's worth your mental health for the (potential) of gains.

@samwam9442 5 күн бұрын

11:05 okay I've just listened to the whole thing and this is really good for you

@realestalex2728 9 күн бұрын

The point at large is to remove overthinking and gut feeling from the process, so yes. You are not going to be overpaying forever anyway.

@moonbalancedd 9 күн бұрын

I just buy T-Bills. I can't bear a balance going down. zero risk tolerance. If government defaults (which it never will), then I have bigger problems than money.

@robpet4424 2 күн бұрын

I would wait

@Baldwin321 8 күн бұрын

Agreed that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, aiming to retire comfortably.

@Christian67337 8 күн бұрын

I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.

@Alden457 8 күн бұрын

@Charles43217 8 күн бұрын

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation

@Alden457 8 күн бұрын

Aileen Gertrude Tippy is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial market

@Charles43217 8 күн бұрын

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her

@CharleyHull-dn6nh 6 күн бұрын

I believe that investors should always use their money for investments, especially We'll start to see greater market diversification in 2024. About $350,000 of my funds are intended to be invested in equities over the upcoming year. Goal of becoming millionaire by 2024

@WilliamsTyler5 6 күн бұрын

Now that the risk is at an all-time high, maybe you should exercise a bit more patience and come back when the risk has subsided. As an alternative, you can get strategic advice from a qualified financial specialist.